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The Smart Grid Utility Data Market
December 1, 2010
The volume of Smart Grid data that will have to be managed by utilities over the next few years is going
to surge from 10,780 terabytes (TB) of new data created in 2010 to over 75,200 TB in 2015. Managing,
analyzing and visualizing that amount of data will be a huge undertaking, creating a global market worth
$2.9 billion in 2015.
Even this vast amount of data is just the start of the “data tsunami” that utilities will have to manage as
more Smart Grid products are installed on the grid. Growing utility awareness of the need to manage this
data will drive sales of Smart Grid data management (DM) software over the next five years. The segment
will achieve a compound annual growth rate (CAGR) of over 20% between 2010 and 2015, making it the
fastest growing segment in the Smart Grid utility data market.
Many utilities are still struggling to understand how the wealth of data generated by Smart Grid
technologies can enhance their business model, and which types of Smart Grid software will provide the
best return on their investment. While utilities are showing increasing interest in visualization software and
outage management systems, it is distribution management systems (DMS) that are expected to provide
the best returns. By 2015, SBI Energy estimates almost twice the number of utilities in the U.S. will have a
DMS in place compared to 2010.
Much of the Smart Grid funding available worldwide is still hardware focused, particularly for the
installation of smart meters. But advanced meters and other sensors are just the fingers of an emerging
smarter electrical grid; it is the data that these devices generate and the backend applications that will
manage and use that data that will be the nervous system and brain of an active and fully capable Smart
Grid.
The Smart Grid Utility Data Market by SBI Energy defines and discusses the data software tools that will
be an absolute necessity for utilities as the Smart Grid gains traction. The analysis will include definitions,
current product offerings and market detail on the following segments:
Data management and data security software used by the electrical utility market
System management tools integrating Smart Grid data with both new and legacy control systems
to provide automation and fine control of a utility’s electrical grid
Data analysis software tools that aggregates and provides usable information to utilities from raw
Smart Grid data
Along with these product segments, the report provides insight into topics such as data integration,
cybersecurity, and adoption of standards that are necessary components for any utility looking to develop
2. its Smart Grid.
Report Methodology:
This report contains both primary and secondary data obtained from government sources, trade
associations and publications, business journals, scientific papers, company literature, investment
reports, and interviews with industry professionals. Statistics for U.S. and global energy use and Smart
Grid funding come from sources such as the U.S. Department of Energy and the International Energy
Administration.
What You’ll Get in This Report:
The Smart Grid Utility Data Market provides a concise, focused look on the Smart Grid data and back-end
software applications market as it exist today, and shows where the market is moving between 2010 and
2015. The report highlights key players in the Smart Grid industry and pinpoints ways that current and
prospective competitors can capitalize on recent trends and spearhead new ones. No other market
research report provides both the comprehensive analysis and extensive data that The Smart Grid Utility
Data Market offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical
charts, tables and graphs.
How You’ll Benefit from this Report:
If your company is already doing business related to power generation, data storage or data analysis and
management technologies, or is considering making the leap, you will find this report invaluable as it
provides a comprehensive package of information and insight not offered in any other single source. You
will gain a thorough understanding of the current market for Smart Grid products related to data
collection, storage, management and analysis, as well as projected markets and trends through 2015.
This report will help:
Marketing managers identify market opportunities and develop targeted promotion plans for
businesses looking to partner with utilities in a Smart Grid implementation program.
Research and development professionals stay on top of competitor initiatives and explore
demand for utility data management and Smart Grid data management and analytic applications.
Advertising agencies working with clients in the banking, retail and power generation industries
develop messages and images that compel homeowners, businesses and industries to migrate
towards alternative energy plans such as time-of-day pricing and demand response.
Business development executives understand the dynamics of the market and identify possible
partnerships.
Information and research center librarians provide market researchers, brand and product
managers and other colleagues with the vital information they need to do their jobs more
effectively.
Additional Information
Market Insights: A Selection From The Report
Smart Grid Data Security
3. Data and data communications security are such fundamental requirements for the Smart Grid that the
Energy Independence and Security Act of 2007 (EISA) mandates comprehensive security for any Smart
Grid technologies funded and implemented in the U.S. However, security standards are still nascent,
making it difficult to ensure data is properly managed in current Smart Grid implementations. SBI Energy
anticipates that third party assurances of security implementations and privacy issues surrounding Smart
Grid data are the two key areas where security could have a potential impact on the market growth of the
Smart Grid
The Smart Grid Application & Data Market
The Smart Grid application segment is small but robust, encompassing and building on traditional SCADA
and utility management systems sales. The Smart Grid data segment is brand new; while electrical
utilities have had to manage some SCADA and automation data in the past, it is nothing compared to the
amount of data now gathered through smart meters and other products.
SBI Energy places the current world market for Smart Grid software and data management applications
at $1.4 billion in 2010, growing to $2.9 billion in...
Smart Grid Software Company Trends
[...]
The combination of these two factors means there have been numerous company acquisitions within the
Smart Grid applications and data management space in 2010. The deal most noticeable and which
developed the most media was ABB’s acquisition of Smart Grid software provider Ventyx. The billion
dollar acquisition puts ABB at the forefront in terms of scope of product offerings within the Smart Grid
back-end application space. SBI Energy expects the strong acquisition pace to continue for most of 2011
as there is still significant consolidation that can happen in the market.
Table of Contents
Chapter 1: Executive Summary
Scope and Methodology
Definition of a Smart Grid
Smart Grid Software Applications
Figure 1-1: Smart Grid Data Tools
Management Software
Analytical Software
Data Management is Vital to the Smart Grid
Smart Grid Data Security
The Smart Grid Application & Data Market
Figure 1-2: Smart Grid Data and Applications Market, 2010-2015 (in millions $)
Smart Grid Application Software Market
Figure 1-3: Smart Grid Software Applications Market, 2010-2015 (in millions $)
The Smart Grid Data Management Market
4. Table 1-1: Smart Grid Data Generation, 2010 and 2015 (in terabytes)
The Cost of Keeping Smart Grid Data Secure
Smart Grid Timeline
Trends in Smart Grid Software Use
Table 1-2: Utilities with Distributed Automation Projects Underway or Completed, 2010-2014 (in
percent)
Data Security Trends
Smart Grid Software Company Trends
Funding the Smart Grid
Figure 1-4: ARRA Smart Grid Application & Data Projects, 2010 (in millions $)
Venture Capital Funding
Development of smart grid standards
NIST Interoperability Standards
Smart Grid Backend Application Standards
Table 1-3: Smart Grid Application & Data Standards
Regulations Affecting Smart Grid Adoption
Table 1-4: Key Smart Grid Legislation and Policy in the U.S.
Energy Efficiency Regulations
Renewable Energy Generation Requirements
Cybersecurity Regulations
U.S. Market Demographics for Smart Grid Applications
Figure 1-5: Number of Utilities in the U.S. by Provider Type, 2008
How much do Utilities Want the Smart Grid?
Are Utilities Prepared for the Smart Grid?
Smart Grid Adoption Around the World
Chapter 2: Forging the Smarter Grid
Scope and Methodology
Report Methodology
Definition of a Smart Grid
Figure 2-1: Smart Grid Overview
A system of systems
5. The Qualities of a Smart Grid
Smart Grid Software Applications
Figure 2-2: Smart Grid Data Tools
SCADA and the Data Mart: Precursor to the Smart Grid
Management Software
Analytical Software
Proper Data Management is Vital to the Smart Grid
Types of Smart Grid Data
Figure 2-3: Smart Grid Data types
Sources of Smart Grid data
Figure 2-4: Sources of Smart Grid Data
Hardware Requirements for Smart Grid Data
Defining “Smart” in a Smart Grid
Table 2-1: NEMA Smart Grid Intelligence Levels
The Smart Grid versus the Active Grid
Smart Grid Data Security
Figure 2-5: NIST Smart Grid Secure Communication Interactions
Key Security Objectives
How Security Adoption can Affect the Smart Grid Market
The Smart Grid Potential
Chapter 3: The Market
Figure 3-1: Smart Grid Enabling Technologies Market, 2009-2014 (in millions $)
Increasing Peak Demand Drives the Need for a Smart Grid
Table 3-1: Top U.S. States for Peak Electricity Demand Forecast, 2015 (in megawatts)
The Smart Grid Application & Data Market
Figure 3-2: Smart Grid Data and Applications Market, 2010-2015 (in millions $)
Smart Grid Application Software Market
Figure 3-3: Smart Grid Software Applications Market, 2010-2015 (in millions $)
Electrical Grid Management Systems Category led by DMS Sales
Figure 3-4: Smart Grid EMS/DMS Market, 2010-2015 (in millions $)
6. Figure 3-5: U.S. EMS and DMS Market Share, 2010-2015 (in percent)
The Smart Grid Data Management Market
Figure 3-6: Smart Grid Data Management Market, 2010-2015 (in millions $)
Table 3-2: Smart Grid Data Generation, 2010 and 2015 (in terabytes)
The Cost of Keeping Smart Grid Data Secure
Figure 3-7: Smart Grid Data Security Market, 2010-2015 (in million $)
Smart Grid Timeline
Figure 3-8: U.S. Smart Grid Implementation Timeline
Funding the Smart Grid
ARRA Smart Grid funding
Figure 3-9: ARRA Smart Grid Funding, 2009 (in millions $)
Figure 3-10: ARRA Smart Grid Application & Data Projects, 2010 (in millions $)
DOE Smart Grid Funding
Table 3-3: DOE OE Smart Grid Funding Allocations, FY2009-FY2011 (in thousands $)
Venture Capital Funding
Figure 3-11: VC Smart Grid Spending by Category, Q1-Q3 of 2010 (in millions $)
CO2 Reduction & the Carbon Credit Market
Figure 3-12: U.S. Electricity Flow Diagram, 2007 Quadrillion Btu
Development of smart grid standards
Figure 3-13: NIST Smart Grid Organizational Structure
NIST Interoperability Standards
Table 3-4: NIST Priority Smart Grid Standards for Development, 2010
Smart Grid Backend Application Standards
Table 3-5: Smart Grid Application & Data Standards
Security Standards
Table 3-6: Standards Relevant to Smart Grid Security, 2010
Regulations Affecting Smart Grid Adoption
Table 3-7: Key Smart Grid Legislation and Policy in the U.S.
Energy Efficiency Regulations
Figure 3-14: U.S. States with Energy Efficiency Resource Standards, 2009
7. Renewable Energy Generation Requirements
Table 3-8: Countries with National Renewable Portfolio Standards
Cybersecurity Regulations
EU Smart Grid Mandates
Chapter 4: Smart Grid Data & Application Trends
Figure 4-1: Relationships of key stakeholders for Smart Grid Adoption
Smart Grid Software Use
Data Management & Analysis Trends
Smart Grid Management System Trends
Table 4-1: Utilities with Distributed Automation Projects Underway or Completed, 2010-2014 (in
percent)
Data Issues Surrounding Utility Adoption of Smart Grids
Internal & External Data Cooperation
Figure 4-2: Utility Internal and External Processes Enabled by Implemented Smart Grid
Capabilities, 2008 (in percent)
Quality of Data Determination
Data Security Trends
Awareness of Data Security in Utilities
Figure 4-3: Frequency Internal Assessment of NERC Security Standards by Utilities, 2008 (in
percent)
Data Privacy Issues
Figure 4-4: Power usage Revealing Personal Activities
Smart Grid Software Integration Also Growing as a Market
Smart Grid Data & Application Case Studies
Southern Company’s Smart Grid Data Management System
Figure 4-5: Southern Company’s Smart Grid Data Management Model
Xcel SmartGridCity
The Case for Smart Grids from a Utility Perspective
Table 4-2: Major Categories of Operational Savings for Two Utilities Implementing an AMI (in
percentage)
Table 4-3: SCE Smart Grid Project Estimated Operational Benefits, 2007 (in millions of dollars)
Internal Utility Benefits
8. Table 4-4: Internal Benefits to Utilities from Implementing Smart Grid Products
External Utility Benefits
Table 4-5: Electrical Disruption Cost by Industry, 2007 (in dollars per kilowatt)
How much do Utilities Want the Smart Grid?
Electrical Utilities
U.S. Market Demographics for Smart Grid Applications
Figure 4-6: Number of Utilities in the U.S. by Provider Type, 2008
Table 4-6: Top U.S. States by Electricity Sold, 2008 (in MW)
Are Utilities Prepared for the Smart Grid?
Table 4-7: Smart Grid Maturity Model
Smart Grid Hardware Leads Software Application use
Demand Response and Time-of-use Pricing
Table 4-8: DOE Survey- Utility Demand Response & Time-of-Use Programs, 2008 (in number of
utilities)
Smart Grid Adoption Around the World
Adoption of Smart Grids in Europe
Comparing U.S. and European Smart Grid Environments
Smart Grids Outside the U.S. and Europe
Chapter 5: Companies
Table 5-1: Major Smart Grid Software Company Acquisitions, 2010
Utilities and Software Firm Partnerships
Table 5-2: Global Intelligent Utility Network Coalition Members, 2010
Smart Grid Data Management Companies
Aclara Software
Performance
Products
Table 5-3: Aclara Software’s Utility Software Products, 2010
Recent Developments
CURRENT Group
Performance
Products
